Below is a summary of Lalcap Ltd's post-election India report - click here to read the full report.
In this report:
BJP's NARENDRA MODI, 63, TO BE 14TH PRIME MINISTER OF INDIA
WE VIEW BJP's LANDSLIDE VICTORY A GAME CHANGER FOR INDIA
- BJP sweeps to power with a landslide victory. This clear and decisive win for the BJP brings to an end 25 years of coalition governments, which have often been very fragile. And, been among the culprits for obstructing key reforms
- Makes it much easier now, compared to past governments in the last 25 years, to push through crucial reforms needed for higher rates of economic growth
- There is "no magic wand" to accelerate growth. But, clear parliamentary strength to a "decisive doer" like Modi is India's best hope
- Congress, which has governed India for 55 out of 67 years, was routed in its worst ever performance. It won only 44 seats and now fails to be recognised as the main opposition party. A party needs at least 10% (54 out of 543) of seats in the Lok Sabha to achieve opposition party status
- So, what may one expect from Modi's new government? His overall vision is of a strong India - economically, in defence, and in influence on the world stage. He wants betterment for all Indians - whatever their background
- "Less government, more governance" has been Modi's mantra
- Raising economic growth rates, improving infrastructure, raising governance and slashing bureaucracy - all points he successfully achieved as Chief Minister of Gujarat since 2001. And why millions voted for him in the hope of it being replicated pan-India
- Stalled reforms are expected to be revived quickly. Foreign investors will be welcomed and sectors opened to them if it is in India's interests - for job and assets creation, for improved infrastructure and specialist technology
- Foreign capital inflows expected to accelerate into India. Rupee to strengthen and capital markets set to continue achieving new highs this year
- A key challenge for Modi will be to push legislation through the Upper House where BJP lacks strength. And successfully navigate through India's complex federal structure where state Chief Ministers play regional politics.
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